Athens is flirting with Moscow. In addition to a lower gas price and Greek interest in a new gas pipeline through Turkey, prime minister Tsipras has publicly renounced his support of the European sanctions. Serbia is prosecuting a number of exporters suspected of illegal re-export, the boycott is off. A Polish greenhouse builder is going to start working in Russia, and a Polish analyst says it is difficult to find new markets for soft fruit. Russian port operator Global Ports incurred a loss last year. Russian companies only have two roads open to capital since access to the European capital markets has been denied: issuing shares, or convincing Chinese investors.
Greeks ask Moscow to lower gas price
The Greek government has asked Russia to lower the gas price. Greece is also trying to improve relations with Russia when it comes to energy. After the South Stream pipeline between Russia and Bulgaria was postponed last year due to EU objections, Russia is now looking into an alternative through Turkey. Greece is interested in extending this Turkish Stream into Greece. Lifting the ban on Greek fruit is still on the agenda.
Tsipras withdraws support EU sanctions
Greek prime minister Tsipras told Russian media that he no longer supports the European sanctions against Russia. He has reportedly also announced his point of view to the EU. "We do not agree with the sanctions, they lead nowhere," the Greek prime minister reportedly said. Within the EU, Greece is bickering with the other member states and European organizations about economic reform. Tsipras has been seeking rapprochement with Russia for a while now, just like several other EU member state. Greek newspapers report that Moscow has already decided to lift the boycott against Greece, Romania and Cyprus. Meanwhile, Tsipras will pay several visits to Moscow in the near future. Next week, an official visit is planned, and in May, the Greek prime minister will be present at the commemoration of the Soviet victory over Nazi Germany. "It's spring in the Greek-Russian relations," Tsipras said.
Serbia prosecutes smugglers
Russian authorities confirmed to Polish media that the boycott of Serbian fruit is off. Serbia has been using improved control systems since March 2, in order to address illegal re-export. In this new system, the phytosanitary certificates have to be sent to Russia before the products are shipped. Serbian customs reports it is prosecuting a dozen companies suspected of exporting Polish apples to Russia with forged certificates.
Polish greenhouse builder starts work in Russia
According to media in Bryansk, Russia, a Polish delegation visited the region to talk about the construction of a tomato greenhouse. Polish tomato cultivation company Legajny is said to be behind this centre. The Polish company has had a greenhouse centre in Kaliningrad for years. In 2010, the centre was renovated, and now numbers 15 hectares. The plan is to build a similar centre in Bryansk, on 50 hectares. The company counts on a yield of 50 kilos of tomatoes per square metre. With the greenhouse, 800 jobs will be created.
New export markets hard to find
According to Sebastian Sadowski-Romanov, CEO of Polish ITRO, finding new markets is difficult for European exporters. "Russia, Belarus, Kazakhstan and Ukraine accounted for 85% of soft fruit sales." Due to the crisis in Ukraine and Russia's closed borders, only the smaller market in Belarus remains. Kazakhstan is a bigger markets, but the distance is too great for soft fruit. "As with apples, we can try to find access to new markets in China, India, Canada and the Arab Emirates, but strawberries can only reach those markets by air freight." Finally, Sebastian points out that although there are many reports of the Polish ministry looking for new markets, this is a long process.
Asian funding for Russian companies
Since the Western sanctions, Russian companies are virtually cut off from the Western capital markets. That means there are two options for companies wanting to attract new capital for expansions: the stock exchange, or finding Asian investors. Retailer Magnit collected 9.8 billion roubles (156 million euros) at the stock exchange in February, after selling 1% of shares. Magnit benefits from the growth in the discounter segment. Russians are looking for cheaper products, so they buy at cheaper supermarkets. Supermarket chain Lenta reportedly wants to collect money at the stock exchange as well, with reports saying Lenta wants to raise 250 million dollars. Not much else is known about the share issue yet.
Another way of attracting capital is to convince Asian investors. Chinese banks already have hefty outstanding loans in Latin American countries, which also have a difficult time gaining access to the Western capital market. All in all, the amount concerned is 22.1 billion dollars, particularly in countries like Venezuela, Argentina and Ecuador. Russia would, according to analysts, have to gain the confidence of Chinese bankers. The Gazprombank, which no longer has access to the European capital markets, got a rating from the Chinese Dagong Rating Agency. Other companies are also reportedly being evaluated by the Chinese rating agency.
Russian port operator Global Ports incurs loss
Russian port operator Global Ports suffered a 193 million dollar loss last year, while revenues went down by 4.5% to 562 million dollars. The devaluation of the rouble inhibited the import, which has meant the port operator processed fewer containers and bulk goods. The company now wants to relieve its debts, and issue more shares in order to raise extra capital.
Bangladesh permanent potato supplier Russia
During the second week of April, a Russian inspection team will visit Bangladesh to check if the country is capable of meeting phytosanitary requirements, Fruit-Inform reports. Last year, diseases were discovered in the potatoes. A plan was then drafted to prevent problems. This is plan is now being evaluated. Bangladesh exports around 103,000 tonnes of potatoes annually, 20,000 tonnes of which for the Russian market. Bangladesh wants to become a permanent supplier of potatoes to Russia.